Ready for the long road ahead

Bosch sees more growth opportunities in China

When Chen Yudong took charge as the president of Bosch (China) Investment Ltd in January, it was a clear indication that the German automotive technology and services provider had embarked on a "localized" strategy for the Chinese market.

"After joining the Bosch China management team in 2008, I saw first-hand how our business has developed. Much as we are celebrating the 125th anniversary of the Bosch Group this year, and the 150th anniversary of our founder's birth, we are also happy to cheer China's 10th anniversary of joining the World Trade Organization (WTO)," said the Suzhou-born executive who heads Bosch's 26,200 employees and 50 legal entities in China.

Bosch, one of the early entrants to China, set up its first sales office in the country in 1909, and the first Bosch car service in Shanghai in 1926.

However, together with the accelerated economic development and opening-up of China, Bosch experienced the most impressive and remarkable high-speed and integrated development during the past 10 years in its current third-largest market.

"We will continuously invest for our long-term development in this market in the near future also," said Chen.

From 2003 to 2010, Bosch's annual investment in China has increased from 490 million yuan ($77 million) to around 2.7 billion yuan, according to Chen.

"After China entered the WTO, our sales revenue increased from 2.4 billion yuan in 2001 to 37.3 billion yuan in 2010. During the same period the number of our associates has also risen substantially from some 2,700 in 2001 to more than 26,000 in 2010," he said.

According to Chen, Bosch China's impressive revenue growth was largely due to the booming automotive industry after the nation became part of the WTO in 2001.

"We're committed to supporting the auto manufacturers of both joint venture branded and Chinese local branded cars with our advanced technology, therefore, we grow with them as well," said Chen.

"Over the long term, we are confident and optimistic of continued growth in China's automotive market, because right now, the auto ownership rate in China is still low compared with the mature automotive markets like Europe or North America. Therefore, along with the future rapid development of China's auto industry, the auto parts industry in China will definitely see fast growth."

Chen also attributed his company's success to Bosch's long-term commitment to China: the "local for local" strategy, as well as all its foundation - the employees.

"We have a 102-year history in China, and we are firmly rooted in this country. We consistently localize our research and development (R&D), production and purchasing," said Chen. "The continuous efforts on high-quality products and services for local customers help us earn high reputation and trust in the industry."

Bosch has been proactively introducing a full range of advanced solutions in China, particularly to help Chinese carmakers achieve cleaner, safer and more economical driving.

"We foresee emerging opportunities for Bosch to further develop in China's auto industry, for example in the growing market demand for new technology to conserve energy and reduce emissions, as well as improving driving safety and comfort," said Chen.

With the opening of its fifth R&D center next year, the strong local production and R&D capability will help Bosch respond to the needs of local customers and offer more tailor-made solutions for the Chinese market," said Chen.

By 2015, Bosch China plans to almost double its workforce to 50,000 employees. "To better support our inland customers, Bosch is also paying more attention to the western region with our 'Go West' strategy," said Chen.